Global General

ECB president: Portugal 'not in same boat with Greece'

(Xinhua)
Updated: 2010-05-07 14:58

LISBON - "Portugal is not in the same boat with Greece," President of the European Central Bank (ECB) Jean-Claude Trichet said here on Thursday.

"This is very visible when we look at the facts and figures. Portugal is not Greece," the ECB chief told a press conference after an ECB meeting held here on Thursday in the Portuguese capital.

Trichet's remarks came as market fears over the spread of the Greek debt crisis to other euro zone countries continued to put pressure on share prices and government borrowing costs.

The ECB president said that given the rising unemployment in the euro zone countries, it is essential that governments provide job incentives.

The banking sector should also be restructured in order to withstand the crisis, he added.

"The proper restructuring of the banking sector should play an important role," said Trichet, stressing the need to strengthen banks' balance sheets.

"Robust balances, effective risk management and transparent and solid business models are crucial for the reinforcement of the banks to ensure adequate access to financing, therefore setting the foundations for a substantial growth and financial stability," Trichet added.